Private equity investment in health care has significantly increased over the last 10 years, with the highest number of investments on record occurring in 2021 and 2022.
An ACC survey conducted earlier this year found that most cardiologists had some degree of familiarity with private equity involvement in the acquisition of cardiology practices. While many indicated that they lacked a complete understanding of the topic and only a handful (7%) had ever been approached by a private equity firm about acquiring their practices, there was clear acknowledgment that the issue is on the rise, notes the American College of Cariology.
Nearly half of cardiologists (47%) participating in the ACC survey expressed concerns about private equity ownership of cardiology practices having a negative impact on cardiologists working at those practices. Respondents noted that a relationship with PE could lead to decreased physician autonomy, reduced job security, and would not provide a better work experience for clinicians and staff.
Unlike the typical health system model that is oriented toward care delivery, clinical integration and long-term relationships, the PE model is focused on specific clinical services with scalability and the ability to generate short-term returns over a period of five to seven years, according to Kris Shepard, senior vice president of clinical enterprise development at Atrium Health
The biggest unanswered question, according to Shepard, is where the patient fits into the private equity dynamic. Read more.
